Ulta Beauty beat Wall Street expectations on the top and bottom lines in its first quarter as it revealed a new Times Square flagship in New York City.
The retailer’s net sales increased 11.1 percent in the first quarter to $3.2 billion, primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores. Analysts had predicted $3.12 billion.
Comparable sales increased 5.3 percent, driven by a 3.7 percent increase in average ticket and a 1.6 percent increase in transactions.
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Diluted earnings per share, meanwhile, increased 15.5 percent to $7.74, above analysts’ expectations for $6.89.
“Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories,” said Kecia Steelman, president and chief executive officer, in a statement. “Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape.”
During the quarter, Ulta launched on TikTok Shop, opened two new stores in Mexico and a handful in the U.S., while its franchise partner Alshaya opened its third store in the Middle East at the Dubai Mall.
“While the situation in the Middle East remains fluid, we continue to be excited about the potential of this flagship location and for the expansion opportunity in the region,” Steelman added during a post earnings call with analysts.
As for the new store in New York, expected to open in late 2027, Steelman said: “This flagship store will be a vibrant, dynamic destination where technology, entertainment and convenience in our differentiated assortment come together to deliver immersive guest experiences and brand activations. This store will showcase next-level brand building and storytelling capabilities, unlock high impact marketing through digital billboards, and drive greater awareness and loyalty with guests from all over the United States in the world.”
During the quarter, fragrance was once again its strongest category, delivering high-teen comp growth and increasing from 11 percent to 12 percent of total revenue. Growth was primarily driven by newness from luxury brands including YSL, Carolina Herrera, Valentino and an early lead of new brand Belmond, as well as innovation including the new milk scent format from exclusive brand Noyz.
Elsewhere, the hair care category delivered high single-digit comparable growth, skin care and wellness recorded low single-digit growth, while the makeup category increased in the low single-digit range.
